Effects of uncertainty on a tire closed-loop supply chain network

Amin, Saman Hassanzadeh; Zhang, Guoqing; Akhtar, Pervaiz

Abstract

In a closed-loop supply chain (CLSC) network, there are both forward and reverse supply chains. In this research, a tire remanufacturing CLSC network is designed and optimized based on tire recovery options. The objective of the optimization model is to maximize the total profit. The optimization model includes multiple products, suppliers, plants, retailers, demand markets, and drop-off depots. The application of the model is discussed based on a realistic network in Toronto, Canada using map. In addition, a new decision tree-based methodology is provided to calculate the net present value of the problem in multiple periods under different sources of uncertainty such as demand and returns. Furthermore, the discount cash flow is considered in the methodology as a novel innovative approach. This methodology can be applied in comparing the profitability of different design options for CLSCs.

Citation

Amin, S. H., Zhang, G., & Akhtar, P. (2017). Effects of uncertainty on a tire closed-loop supply chain network. Expert Systems with Applications, 73, 82-91. https://doi.org/10.1016/j.eswa.2016.12.024

• Acceptance Date: Dec 19, 2016
• Online Publication Date: Dec 19, 2016
• Publication Date: May 1, 2017
• Deposit Date: Jan 26, 2017
• Publicly Available Date: Dec 20, 2017
• Journal: Expert systems with applications
• Print ISSN: 0957-4174
• Electronic ISSN: 0957-4174
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 73
• Pages: 82-91
• DOI: https://doi.org/10.1016/j.eswa.2016.12.024
• Keywords: Closed-loop supply chain (CLSC); Reverse logistics (RL); Tyre remanufacturing; Uncertainty; Decision tree; Cash flow analysis
• Public URL: https://hull-repository.worktribe.com/output/447648
• Publisher URL: http://www.sciencedirect.com/science/article/pii/S0957417416306996
• Additional Information: This article is maintained by: Elsevier; Article Title: Effects of uncertainty on a tire closed-loop supply chain network; Journal Title: Expert Systems with Applications; CrossRef DOI link to publisher maintained version: http://dx.doi.org/10.1016/j.eswa.2016.12.024; Content Type: article; Copyright: © 2016 Elsevier Ltd. All rights reserved.
• Contract Date: Jan 26, 2017